Paraguay Senators Support Bitcoin Mining

This week, Paraguayan lawmakers rejected the president’s veto of a major Bitcoin mining regulation bill.

On Wednesday, 33 senators voted to overturn President Mario Abdo Benitez‘s decision to veto the law, which seeks to regulate Bitcoin mining in the South American country.

The plan to provide a clear tax and regulatory framework that would allow miners to know where they stand while working in the country was adopted by Paraguay’s congress in July.

President Benitez then vetoed it, stating that mining consumes a lot of energy yet provides few jobs.

However, this week’s decision demonstrates that senators are adamant about regulating the sector, which is now operating in a legal gray area in the Latin American country. According to a press release from the country’s Congress, Senator Enrique Salyn Buzarquis stated that it was “better to legitimize” the sector so that it could be taxed.

Congressman Daniel Rojas stated that a well-regulated crypto economy may bring new sorts of employment to Paraguay.

Lawmakers believe Paraguay has the potential to become a crypto center because it is becoming increasingly appealing to Bitcoin miners, owing to its low power costs.

Bitcoin mining, which is the process of adding and confirming blocks of transactions to the asset’s public blockchain, is frequently done on a large scale and necessitates a large number of computers—and energy.

The bill will now be debated in Paraguay’s Chamber of Deputies.

Furthermore, major cryptocurrency firms are aiming to set up operations in Paraguay. Bitfarms, a Canadian mining company, said last year that it was expanding to the nation on a five-year lease with an annual power purchase agreement to ensure 10 MW of green hydropower.

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